Malaysia

Govt to set up broad social security framework to fight income inequality

Policy will provide aid, protection to various targeted groups, says Datuk Seri Mustapa Mohamed

Updated 4 years ago · Published on 14 Jun 2022 4:28PM

Govt to set up broad social security framework to fight income inequality
Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed says reaching Malaysia’s goal of becoming a high-income nation by the end of 2025 will be a hollow achievement if income and regional disparities continue to widen and poverty rates remain high. – Bernama pic, June 14, 2022

KUALA LUMPUR – A national policy on social protection will be formulated, going forward, as a comprehensive framework to provide social assistance and protection to various targeted groups, said Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed.

“As our nation continues to develop, it is essential that we are able to strike a balance between economic and social dimensions of growth.

“Reaching our goal of becoming a high-income nation by the end of 2025 will be a hollow achievement if income and regional disparities continue to widen and poverty rates remain high,” he said while officiating at the World Bank’s virtual workshop on Global Best Practices in Social Safety Nets Reform today.

The workshop was jointly organised by the Economic Planning Unit (EPU).

Mustapa said the country also needs to have a responsive social protection system, especially for the poor and marginalised.

“While poverty eradication has always been an important component of our development agenda, one of the most important programmes which will be implemented this year is eradicating hardcore poverty by the end of 2025.

“Under Phase 1 of the Keluarga Malaysia Hardcore Poverty Eradication Programme, we have identified 80 localities covering urban and rural areas, as well as Orang Asli settlements, and these hardcore poverty eradication programmes are being rolled out throughout the country,” he said.

Mustapa further noted that a dedicated poverty unit has been established in the EPU as well as at the state level, which is tasked with enhancing the integrity of the eKasih database on poverty as well as coordinating programmes and initiatives.

On another note, he said the government has introduced various programmes to uplift the quality of life for all Malaysians, especially those in the low household-income groups.

During the 11th Malaysia Plan, among the successful programmes were: equipping over 350,000 individuals with digital skills through the eRezeki programme, providing opportunities for over 5,000 entrepreneurs to venture into micro-businesses under the Program Pemerkasaan Ekonomi Komuniti Bandar and completing close to 300,000 units of affordable houses as of 2020.

Mustapa added that, under the 12th Malaysia Plan (2021-2025), social protection of the public is given focus through Theme 2: Strengthening Security, Wellbeing and Inclusivity.

“Emphasis will be placed on new approaches in addressing poverty, reducing disparities between low and high-income groups, more equitable Bumiputera socio-economic outcomes and enhancing the socio-economic status of the Orang Asli. 

“With the successful implementation of these programmes during the 12MP period, development gaps among regions, states, urban and rural areas will be narrowed, with specific emphasis on enhancing socio-economic development in Sabah and Sarawak,” he added. – Bernama, June 14, 2022

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